Overseas Investment Decisions Now Twice as Fast Under New Risk-Based Reforms

Overseas investment applications in New Zealand are now being processed more than twice as fast as before, marking a major step toward revitalising economic growth and job creation, says Associate Finance Minister David Seymour.

Seymour announced that Land Information New Zealand (LINZ) — the agency responsible for regulating the Overseas Investment Act — has achieved a dramatic improvement in processing efficiency following a series of reforms and directives issued by the Government.

Major Cuts in Processing Times

In the 12 months to 31 August, LINZ processed nearly 87 per cent of consent applications in half the statutory timeframe, exceeding Seymour’s 2023 Ministerial directive goal of 80 per cent. Average processing times have plunged from 71 working days to under 27 working days, representing a 62 per cent improvement compared with the 2024 financial year.

“This is a vital ingredient for businesses seeking capital to grow, create jobs, and pay higher wages,” Seymour said. “New Zealanders have been paying the price for one of the most restrictive overseas investment regimes in the developed world — slower growth, fewer jobs, lower productivity, and stagnant wages. We’re fixing that.”

Streamlined Risk-Based Approach

The faster processing times are largely the result of a risk-based approach to assessing investment applications. This method allows LINZ to focus its scrutiny on high-risk or sensitive transactions, while processing low-risk applications more quickly and efficiently.

“By making an important government service more efficient, we’re getting better outcomes for New Zealanders,” Seymour explained. “The majority of applications are low-risk, and they shouldn’t be bogged down by the same level of bureaucracy as more complex deals.”

As part of the reform, most decision-making authority has been delegated to LINZ officials, enabling faster turnaround without sacrificing oversight. LINZ still retains the full statutory timeframe for around 20 per cent of cases — typically those involving complex or high-value transactions.

Growing Investor Confidence

Investor sentiment appears to be responding positively. In the past year, there were 131 applications for overseas investment — up from 122 the previous year, excluding residential-only applications. Seymour said this uptick reflects renewed confidence in New Zealand’s investment environment.

“Long waiting times create uncertainty and discourage investment. That hurts New Zealand businesses that rely on overseas capital,” he said. “The feedback from investors has been overwhelmingly positive. They welcome the efficiency improvements, which still maintain rigorous checks where needed.”

Legislative Reform to Simplify Investment Screening

The Government’s reform agenda is also advancing through legislation. The Overseas Investment (National Interest Test and Other Matters) Amendment Bill, currently before Parliament’s select committee, will simplify and consolidate screening requirements for less sensitive assets.

The bill introduces a modified national interest test to replace the existing “benefit to New Zealand” and “investor” tests. This change will allow regulators to triage low-risk transactions quickly, while still providing mechanisms — including the imposition of conditions or outright blocking — to manage cases that may pose national interest concerns.

Importantly, existing screening requirements will remain in place for investments in residential land, farmland, and fishing quota, which are considered sensitive.

“For all other investments, decisions must be made within 15 days, unless a national interest risk is identified,” Seymour said. “That’s a huge improvement from the current 70-day timeframe under the old benefit test, where decisions typically took around 30 days.”

Attracting Capital to Drive Growth

Seymour underscored that international investment plays a critical role in New Zealand’s economic success, providing access to global capital, expertise, and innovation.

“New Zealand has been turning away opportunities for growth for too long,” he said. “International investment drives productivity, enables businesses to scale, and creates the high-paying jobs that support families and communities.”

The reforms are part of a broader government effort to modernise regulatory frameworks, cut red tape, and foster a more dynamic and open economy. With overseas investment approvals now running at record efficiency levels, officials say the changes are already delivering measurable benefits for both investors and the wider economy.